... the sales figure directly.> Allowances: Price reductions made to customers because of defective products or for other reasons.> Sales discounts: discounts taken by customers for prompt payment. For example, a business may offer a 2% discount to customers who pay within 10 days.> Sales taxes and excise taxes (excise duties): Such taxes are not revenues but rather represent collections that the business makes on behalf of the government. They are a liability to the government until paid. 2. Cost of Sales According to the Matching Concept, the production cost or purchase cost of the goods sold or services rendered are presented against the revenues from their sales. When computing cost of sales, we can choose from several methods like FIFO, LIFO, average cost. In Hungary, only FIFO and average cost is accepted by the law. 3. Gross Margin (Gross Profit) The difference between sales revenue and cost of sales. Its meaning is: how much ...

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